Needham & Company LLC Reaffirms “Buy” Rating for Paycom Software (NYSE:PAYC)

Needham & Company LLC restated their buy rating on shares of Paycom Software (NYSE:PAYC) in a report released on Monday morning, AnalystRatings.com reports. The firm currently has a $250.00 price target on the software maker’s stock.

PAYC has been the subject of a number of other reports. KeyCorp increased their price objective on shares of Paycom Software from $314.00 to $327.00 and gave the stock an overweight rating in a research note on Thursday, February 6th. Credit Suisse Group upped their target price on shares of Paycom Software from $235.00 to $290.00 and gave the company a neutral rating in a report on Thursday, February 6th. They noted that the move was a valuation call. Oppenheimer dropped their target price on shares of Paycom Software from $325.00 to $255.00 and set an outperform rating on the stock in a report on Tuesday, March 17th. Citigroup upped their target price on shares of Paycom Software from $302.00 to $367.00 and gave the company a buy rating in a report on Wednesday, January 29th. Finally, Royal Bank of Canada upped their target price on shares of Paycom Software from $278.00 to $345.00 and gave the company a positive rating in a report on Thursday, February 6th. Ten equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. Paycom Software has a consensus rating of Hold and an average price target of $270.06.

Shares of Paycom Software stock traded up $18.56 during trading hours on Monday, reaching $229.21. 1,086,709 shares of the company’s stock were exchanged, compared to its average volume of 1,137,270. The company has a 50 day moving average of $266.06 and a two-hundred day moving average of $253.15. Paycom Software has a fifty-two week low of $173.65 and a fifty-two week high of $342.00. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.06. The stock has a market cap of $12.61 billion, a P/E ratio of 74.18, a P/E/G ratio of 2.49 and a beta of 1.22.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings data on Wednesday, February 5th. The software maker reported $0.86 EPS for the quarter, topping the Zacks’ consensus estimate of $0.77 by $0.09. Paycom Software had a net margin of 24.48% and a return on equity of 37.47%. The company had revenue of $193.40 million during the quarter, compared to the consensus estimate of $190.34 million. During the same period in the prior year, the business posted $0.61 EPS. The company’s quarterly revenue was up 28.7% on a year-over-year basis. As a group, analysts expect that Paycom Software will post 3.24 earnings per share for the current fiscal year.

Paycom Software declared that its board has authorized a stock buyback plan on Thursday, March 12th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the software maker to repurchase up to 1.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Institutional investors have recently added to or reduced their stakes in the business. Stephenson National Bank & Trust bought a new position in Paycom Software in the 4th quarter valued at about $25,000. Resources Management Corp CT ADV bought a new position in Paycom Software in the 3rd quarter valued at about $26,000. Allred Capital Management LLC bought a new position in Paycom Software in the 4th quarter valued at about $26,000. Pacifica Partners Inc. bought a new position in Paycom Software in the 4th quarter valued at about $26,000. Finally, Harel Insurance Investments & Financial Services Ltd. bought a new position in Paycom Software in the 4th quarter valued at about $38,000. 70.95% of the stock is currently owned by hedge funds and other institutional investors.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.

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Analyst Recommendations for Paycom Software (NYSE:PAYC)

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